WASHINGTON--The house planned to vote as early as Tuesday night on legislation that would revamp the laws on swaps and futures contracts.
The bill would, among other things, prevent the Commodity Futures Trading Commission from Regulating private swaps agreements between banks and large businesses or wealthy individuals. However, House Republican leaders and other negotiators have decided to exclude provisions that protected a broader range of bank-executed swaps with smaller corporate or retail counterparties.
Some banks sough these wider protections, which were supported by Senate Banking Committee Chairman Phil Gramm and House Banking Committee Chairman Jim Leach.
The bill would also exclude language sought by Sen. Gramm and other that would have barred the Securities and exchange commission from regulating swaps.
Observers have predicted that Sen. Gramm will attempt to block Senate passage if the bill excludes these key provisions. The Texas Republican's spokeswoman said Tuesday that lawmakers plan to adjourn before the necessary complex negotiations could be completed. "Everything we've heard about what the house is planning to send over indicates they are going to leave the job unfinished, and we are really running out of time over here," she said.